Financial Crime World

Haiti Fails to Meet CFT Regulatory Requirements, Warns CFATF

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A high-level mission by the Caribbean Financial Action Task Force (CFATF) in April 2015 identified significant anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies in Haiti. Despite subsequent efforts by the country to address these issues, the CFATF has determined that Haiti has not made sufficient progress.

Warning Issued

On September 17, 2015, a letter was sent by the CFATF Chair, giving Haiti until November 2015 to demonstrate progress in non-legislative measures. These included developing a freezing mechanism for terrorist assets. While some progress was made, Haiti failed to meet this deadline and was subsequently told that it needed to show substantial compliance with both legislative and non-legislative requirements by May 2016.

Recent Efforts

Since then, Haiti has taken some steps to improve its AML/CFT regime:

  • Providing training to financial intelligence unit staff, police officers, prosecutors, and magistrates
  • Updating central bank guidelines to strengthen customer due diligence measures
  • Drafting amendments to a bill on the Haitian Financial Intelligence Unit (UCREF) to allow for information exchange with counterpart agencies under conditions of reciprocity

Remaining Deficiencies

Despite these efforts, the CFATF has determined that Haiti still has significant strategic AML/CFT deficiencies, including certain legislative reforms. If Haiti does not take specific steps by November 2016 to address these issues:

  • The CFATF may further consider identifying the country as having failed to take sufficient steps
  • The CFATF may call upon its member states to implement countermeasures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Haiti

Consequences

If Haiti fails to address these issues, it may face serious consequences for its international reputation and financial stability. It is crucial that the country takes immediate action to rectify its AML/CFT deficiencies and demonstrate its commitment to combating money laundering and terrorist financing.